Wage and hour claims typically stem from alleged timekeeping and/or payroll violations. Timekeeping allegations may include unpaid wages stemming from compensable time off the clock or time rounding, non-compliant meal/rest periods, unreimbursed business expenses, misclassification, and the incorrect calculation of premium pay. Payroll violations may cover the items listed on wage statements and when earnings were received.

Econ One’s wage and hour analysis usually entails a review/analyze of historical records consisting of timekeeping, payroll, employee history, and/or schedule data. These materials can be voluminous and may come in the form of spreadsheets, delimited files, native PDFs, or scanned PDFs. The team at Econ One is experienced and equipped to handle each of these scenarios. Shift counts, pay period counts, earned/recorded breaks, and hourly rates of pay comprise some of the summary statistics that we calculate directly from the employer’s historical records.

Econ One’s wage and hour analysis may also involve the collection/review/analysis of “representative evidence.” This consists of responses from former/current employees via a survey, in-person interviews/observations, interrogatory responses, and/or depositions. Representative evidence becomes a viable option in the event that the historical records do not contain all of the information needed to quantify alleged unpaid wages. In past cases, Econ One’s experts and consultants have collected data from a random sample of class members to estimate the amount of alleged compensable time off the clock per shift, total compensable time per shift, and the percentage of non-compliant rest periods. Depending on the allegations and specifics of the case/project, calculations derived from representative evidence may include some combination of the following:

• The frequency and duration of alleged unrecorded compensable time
• The extent to which duty-free, uninterrupted breaks were taken
• The amount of unreimbursed business expenses

Class Certification in Wage and Hour Cases

At the class certification stage in wage and hour cases, the plaintiffs typically present allegations and facts so that the court can assess whether the case can proceed as a class action.  Clients value the expertise of Econ One’s wage and hour experts for guidance on class certification issues, including (i) an analysis of historical records produced to date, and (ii) a proposal for calculating classwide damages in the event that class certification is granted.

Econ One’s statisticians and consultants have extensive experience working on large class certification cases across a wide array of industries.  We utilize robust computational techniques and data analyses to demonstrate how timekeeping and payroll data can aid the court.  Our analyses and proposed damages methodologies are presented based on (i) our understanding of the law, and (ii) the case-specific allegations.  If applicable, we also provide insights on statistical sampling and “representative evidence,” e.g., from surveys and/or class member depositions.

Damages in Wage and Hour Cases

A wage and hour damages analysis typically entails a comparison of employees’ actual to expected pay.  The difference between the two can stem from a wide range of issues, including compensable time off the clock, time rounding, non-compliant meal/rest periods, unreimbursed business expenses, time rounding, and the incorrect calculation of premium pay.  Oftentimes the applicable laws and formulas used to calculate alleged unpaid wages, interest, and penalties are a by-product of the geographic state and type of court, i.e., local or federal.

Econ One’s wage and hour experts have worked on some of the largest and most noteworthy employment cases in the United States.  Over the course of our careers, we also have provided potential damages analysis for mediation purposes in thousands of class/representative actions.  Additionally, we consult directly with employers to conduct one-time and/or recurring wage and hour audits of the company’s time/pay records.  Econ One’s analysts employ efficient techniques to process and analyze large, complex historical records.

Econ One experts have a deep understanding in the areas of data analysis, statistical analysis/inference, and statistical sampling.  We apply these methods when calculating alleged unpaid wages, pre-judgment interest, derivative penalties, and PAGA penalties.  Our expertise in working with large amounts of complex data and applying statistical concepts enables us to provide clear and persuasive results to be used in mediation, as well as expert reports and testimony in court.